Tag Archives: China

     Following are the welcome remarks by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, at the Digital Economy Summit 2024 today (April 12):    

Financial Secretary, Mr Paul Chan 尊敬的中è�¯è¾¦ç›§æ–°å¯§å‰¯ä¸»ä»» (Deputy Director of the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region (SAR) Ms Lu Xinning), 尊敬的國家網信辦王崧副主任 (Vice Minister of the Cyberspace Administration of China Mr Wang Song), 尊敬的中國互è�¯ç¶²ç™¼å±•åŸºé‡‘會王秀è»�ç�†äº‹é•·(President of the China Internet Development Foundation, Ms Wang Xiujun), distinguished speakers and guests, ladies and gentlemen,

     Good morning and welcome to Digital Economy Summit 2024. In particular, a warm welcome to our guests and friends from the Mainland and abroad for joining us at this innovation and technology (I&T) flagship event in Hong Kong.

     Organised by the Innovation, Technology and Industry Bureau and Cyberport, the Digital Economy Summit has established itself as Hong Kong’s annual high-powered I&T event. The theme of this year’s summit is “Smarter Technovation for all: Forging a Sustainable Future”. This theme highlights the importance of I&T in tackling global challenges, driving the global digital economy and at the same time promoting sustainability and creating positive societal outcomes.

     This year, our two-day programme comprises a total of eight thematic forums, which are dedicated to fostering a holistic and multi-dimensional approach to look into how the global digital economy is being shaped and impacted. Over 100 industry experts and global thought leaders come here to share their valuable experience and vision. I encourage all of you to grasp this golden opportunity to engage in inspiring discussions and explore new business collaborations in this global technology wave.

     The Hong Kong SAR Government has always accorded high priority to developing Hong Kong into an international I&T hub as set out in our country’s 14th Five-year Plan. Under the leadership of our Chief Executive, Mr John Lee, the Hong Kong I&T Development Blueprint published in December 2022 laid down a clear course for Hong Kong’s I&T development in the next five to 10 years, which includes accelerating the development of the digital economy and smart city. In this year’s Budget as announced by our Financial Secretary, Mr Paul Chan, a number of digital economy-related initiatives and measures were introduced, which again further demonstrates our government’s commitments in I&T adoption for higher-quality economic growth.

     Hong Kong will continue to contribute our I&T power in forging a sustainable future. The most commonly cited definition is development that meets the needs of the present without compromising the ability of our future generations to meet their own needs. Echoing today’s theme, how we are going to achieve a sustainable future is developed by maintaining a balance between using technology in an intelligent way, while at the same time, promoting, creating and maximising long-term value by using technology in a safe and responsible manner. I believe our speakers in this two-day programme will give the best illustration on this important agenda.

     Before I close, I would like to thank Cyberport, my colleagues in the Innovation, Technology and Industry Bureau and the Office of the Government Chief Information Officer, and our collaboration partners for their brilliant contributions in organising this great event. I also wish you all a truly rewarding experience at the Summit and a wonderful experience in Hong Kong. Thank you very much.

    

     Following is the speech by the Financial Secretary, Mr Paul Chan, at the Visionary Forum of the Digital Economy Summit 2024 today (April 12):
 
尊敬的王崧副主任 (Vice Minister of the Cyberspace Administration of China Mr Wang Song)ã€�尊敬的盧新寧副主任 (Deputy Director of the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region Ms Lu Xinning)ã€�尊敬的王ç�†äº‹é•· (President of the China Internet Development Foundation, Ms Wang Xiujun)ã€�羅市長 (Deputy Party-secretary of the CPC Hefei Municipal Committee, Mayor of Hefei Municipal People’s Government, Mr Luo Yunfeng)ã€�å­«æ�±æ•™æŽˆ (the Secretary for Innovation, Technology and Industry, Professor Sun Dong), distinguished speakers and guests, ladies and gentlemen,
 
     Good morning. A warm welcome to Hong Kong and this year’s Digital Economy Summit, under the theme of “Smarter Technovation for All: Forging a Sustainable Future”. 
 
     This two-day gathering will bring together some 4,000 professionals from Hong Kong, the Mainland and all over the world, a perfect occasion for visionaries, industry leaders and innovators to discuss a broad spectrum of topics in the realm of the digital economy. We are here too, to network, and to explore collaboration opportunities down this long road of digital promise.
 
     Here I would like to extend our warmest welcome to Vice Minister Mr Wang Song from the Cyberspace Administration of China, President Wang Xiujun of the China Internet Development Foundation, and Mayor Mr Luo Yunfeng. They will share respectively their valuable insights and perspectives on our country’s experience and potential in the digital economy.
 
Digital economy as a driver of the economy
 
     Ladies and gentlemen, the digital economy has clearly emerged as a new driving force for global economic development. From digital payments to generative AI (artificial intelligence), data are rapidly changing how businesses operate and thrive, how cities are managed, and, ultimately, how we work, learn and live.
 
     Our country is a leader in this respect. Latest estimates suggest that on the Mainland, the scale of the digital economy surpassed RMB50 trillion in 2023, accounting for over 40 per cent of our country’s GDP (gross domestic product). Indeed, it is an important component of “new quality productive forces” highlighted by President Xi Jinping. In the Government Work Report delivered by Premier Li Qiang at the recent “Two Sessions” in Beijing, advancing the innovative development of the digital economy is a priority task of the country.
 
Hong Kong charting its course
 
     In Hong Kong, we know that in the domain of the digital economy, the landscape is complex and rapidly evolving. Competition among cities and economies in this field is keen. Hong Kong must move fast to stay ahead of the curve.
 
     That is why in my Budget two years ago, we decided to establish the Digital Economy Development Committee, which I chair, comprising the relevant government officials, industry experts and academics. It advises the Government on what Hong Kong should do to advance and prevail in the era of the digital economy.
 
     After rounds of detailed studies and discussion, the Committee has put forward a set of 12 core recommendations. Some of them are already being implemented. Some are in the pipeline. 
 
     I am pleased to announce that these recommendations have just been made public today. 
 
     In short, they fall under five major pillars. 
 
     First, strengthening the overall digital policy of Hong Kong. Core to this is the establishment of the Digital Policy Office this year. The Office will assume overall responsibility on formulating and implementing effective digital policies. It is its mandate to drive the development of the digital economy and smart city. 
 
     Second, strengthening our digital infrastructure. That includes enhancing the use and coverage of 5G networks, encouraging the building of high-performance computing and data centres, further promoting electronic payments, rolling out the business version of “iAM Smart”, and more.
 
     An increasingly important aspect of digital infrastructure is to provide computing power to support the development of artificial intelligence. Hong Kong is now building a supercomputing centre that will serve the computing power needs of enterprises, academic and research institutions. The first phase of its service will be rolled out as soon as within this year.
 
     Third, facilitating local and cross-boundary data flow. On the local front, we will work to encourage both the public and private sectors to open up more data. And we will extend the coverage of the Commercial Data Interchange, or CDI, run by the Hong Kong Monetary Authority. The CDI helps enterprises to obtain loans more conveniently through sharing their data with the banks on a consent basis. At the end of last year, it had facilitated more than 13,000 loan applications with a total loan amount of around HK$12 billion.
 
     On cross-boundary data flow, this is an area where Hong Kong enjoys unique advantages under the “one country, two systems” arrangement. Hong Kong is where data from the Mainland and around the world would converge.
 
     As an international city, we have long enjoyed unfettered access to international data.  Now, we are making good progress in cross-boundary flow of data with the Mainland. In June last year, we signed an MOU (memorandum of understanding) with the Cyberspace Administration of China on jointly promoting cross-boundary data flow in the Greater Bay Area. In December, we launched a pilot scheme to facilitate the flow of personal information within the Greater Bay Area for the banking, credit referencing and healthcare sectors. The measure will be extended to other sectors after reviewing the outcome of the pilot scheme.
 
     These and other upcoming endeavours will drive more public and private cross-boundary services, and benefit our businesses and citizens. They will also encourage more research and development activities in AI and life and health technologies, here in Hong Kong.
 
     Looking ahead, we see clear potential for international data trading to become a new and thriving industry in the city. With that in mind, we have commissioned an expert group to study how best to develop a robust data-trading system in Hong Kong.

     Fourth, expediting digital transformation. In this respect, the ability for enterprises, especially SMEs (small and medium enterprises), to adapt to and engage in digital transformation is highly important. To this end, we will support and incentivise SMEs in adopting electronic options such as electronic payments, provide them with necessary information and skills training, and more.
 
     Just at the end of March, Cyberport has rolled out a pilot subsidy scheme for SMEs in the F&B (food and beverage) sector to purchase off-the-shelf digital solutions covering digital payment solutions, online promotion and customer management. The retail industry will be the next batch to benefit.
 
     Finally, developing a sustainable talent strategy. We will continue to attract, retain and cultivate digital talent through enhancing education and training, as well as attracting talent and tech enterprises from outside Hong Kong. And we will also work to enhance digital literacy and competency for the whole community.
 
Concluding remarks
 
     Ladies and gentlemen, I have highlighted just some recent developments of Hong Kong in the digital economy. And we know we’re just getting started. I do look forward to the many inspiring ideas that will help us drive the progress of digital transformation further and faster.
 
     My sincere thanks to the Cyberspace Administration of China and the China Internet Development Foundation for their support to this Summit over the years. I also thank our organisers, the Innovation, Technology and Industry Bureau, the Office of the Government Chief Information Officer, and Hong Kong Cyberport.
 
     I wish you a rewarding Summit and the best of health and digital business in the coming years. Thank you.

            

     Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the Hong Kong Spring Reception in Chicago, the United States (US) yesterday (April 11, Chicago time):
 
     Distinguished guests, ladies and gentlemen, friends of Hong Kong,
 
     It gives me great pleasure to join you tonight at the Hong Kong Spring Reception, co-hosted by the Hong Kong Economic and Trade Office in New York and the Hong Kong Trade Development Council in Chicago.
 
     Spring is the season of renewal. Spirits are high and people are looking forward with keen anticipation to the year ahead. As we welcome the arrival of a new season, Hong Kong is also nurturing fresh vitality and prosperity.
 
     As the events capital of Asia, Hong Kong stands as a compact, globally connected city that is increasingly attracting world-class mega events. In the first half of 2024 alone, more than 80 mega events have been or will be held in Hong Kong, including notable ones such as the Financial Mega Event Week, the ComplexCon Hong Kong, Art Basel Hong Kong, the Hong Kong Rugby Sevens, and many more.
 
     Our economy is gaining momentum as well. The Hong Kong economy rebounded in 2023 with real GDP (gross domestic product) growth resuming at 3.2 per cent. It is projected to further expand in 2024, with growth of 2.5 per cent to 3.5 per cent in real terms for the year as a whole.
 
     Hong Kong’s air passenger traffic has recovered to 80 per cent of pre-pandemic levels. Our various talent admission schemes have attracted over 250 000 applications since the end of 2022, including 70 000 submissions through the Top Talent Pass Scheme.
 
     Banking deposits in Hong Kong exceeded US$2 trillion at the end of 2023. That’s around 17 per cent higher than the pre-Covid level. Hong Kong remains Asia’s leading asset and wealth management centre, managing close to US$4 trillion in assets.  We are also Asia’s largest hedge fund hub and the second-largest private equity centre.
 
     Hong Kong has established itself as a leader in green and sustainable finance in Asia. In 2022, we captured over one-third of the market share as a green and sustainable bond arranger in the region. To support this burgeoning industry, the Hong Kong Government has implemented the impactful Green and Sustainable Finance Grant Scheme. This programme has already provided subsidies to eligible bond issuers and loan borrowers, facilitating the issuance of more than 340 green and sustainable debt instruments valued at over US$100 billion. Recently in March, we released a vision statement to outline how we will assist companies and financial institutions in enhancing their sustainability reporting and data analysis practices. This statement elucidates our strategic priority of promoting green and sustainable finance as a key driver for the future. Hong Kong is firmly committed to cementing our position as a leading centre for sustainable finance in Asia. In fact, this is a key area in which I see many opportunities for co-operation between Hong Kong and the US.
 
     Our long-standing bilateral trade relations with the US remain strong despite geopolitical tensions and economic headwinds. The US is Hong Kong’s third-largest trading partner, and Hong Kong is the second-largest trading partner economy with which the US enjoys a trade surplus. At last count, there are close to 1 300 US firms in Hong Kong. 
 
     Spring is also a time to sow the seeds for future growth. In his 2024-25 Hong Kong Budget unveiled in February, the Financial Secretary introduced a raft of measures to bolster confidence and create favourable conditions for Hong Kong’s economic development.
 
     A series of targeted measures were announced alongside the Budget, which aims at continuing to attract enterprises, capital and talent on all fronts, and support businesses and people’s livelihoods.
 
     Ladies and gentlemen, spring is also a season of hope. It is my sincere hope that we can continue our collaborative efforts to strengthen the ties between Hong Kong and the United States.
 
     Last but not least, I’d like to wish you and your families good health, good fortune, and success in the new year. Thank you.

  

     Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at a luncheon with the University of Chicago in Chicago, the United States, yesterday (April 11, Chicago time):
 
Ladies and gentlemen,
 
     Good afternoon.
 
     It’s my pleasure to be here at the prestigious University of Chicago today. As one of the world’s leading global research institutions, the University of Chicago has long been at the forefront of cutting-edge innovation and pioneering thought leadership. Your strong commitment to international engagement, with various programmes, initiatives and partnerships spanning over 48 nations and every continent, is truly impressive. Global mindset and cross-pollination of ideas are crucial as we navigate an increasingly interconnected world. I understand that Chicago Booth has already opened its Asia campus in Hong Kong back since 2014.
 
     Today, I would like to discuss the tremendous development opportunities in two key areas that are transforming the future of finance – fintech and green and sustainable finance. 
 
     Let me start with fintech. I know your Asia campus was first opened in our Cyberport, meaning that your University has very good foresight. Currently, we have around 1 000 fintech companies operating in the city, covering a diverse range of areas such as mobile payments, cross-border wealth management, AI-powered financial advisory services, and regulatory technology. We have a well-developed ecosystem including eight virtual banks, four virtual insurance companies, and two licensed virtual asset service providers that are redefining traditional financial services. And according to a recent market study, in 2023 Hong Kong ranked fourth in Asia and ninth globally in terms of fintech investment, making it into the global top 10 for the first time. The total fintech investment amount in Hong Kong reached around US$900 million, with an average deal size of US$22 million.
 
     The development of this dynamic fintech ecosystem has attracted a vast influx of companies and talented individuals to join the industry. In fact, the combined fintech communities of our incubators Cyberport and the Hong Kong Science Park currently employ approximately 7 200 people – and this number is expected to continue growing rapidly, providing exciting opportunities for local and regional talent. But we are not resting on our laurels. To further accelerate the development of fintech in Hong Kong, we are taking concerted action on several key fronts:
 
(i) We are prioritising enhanced data sharing and access. A government-led data sharing initiative has been launched to not only improve data exchange across different departments, but also open up more types of government data for banks to access through the Hong Kong Monetary Authority’s Commercial Data Interchange (CDI) platform. 
 
(ii) We are embracing innovative payment solutions, such as our Project mBridge and Project e-HKD that are exploring the potential of central bank digital currencies at both the wholesale and retail levels. 
 
(iii) Hong Kong’s approach to virtual assets focuses on risk-based, prudent regulation. We are introducing a new regulatory framework for fiat-referenced stablecoins. To further support this initiative, the Hong Kong Monetary Authority has launched a stablecoin issuer sandbox arrangement. This serves as an effective channel for the regulator and industry to exchange views on the proposed regulatory requirements, and will help us formulate fit-for-purpose, risk-based rules to promote the sustainable growth of the stablecoin issuance business in Hong Kong.
 
     Given the importance of fintech, the Hong Kong Government has been attaching great importance to nurturing fintech talent. In October last year, we launched the GBA Fintech Two-way Internship Scheme for Post-secondary Students to help students acquire practical work experience in fintech companies in Hong Kong and Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The Scheme provided internship positions in Hong Kong and Mainland cities of the GBA (Guangzhou, Shenzhen and Zhuhai), covering fintech companies of different segments in Hong Kong and the Mainland, including virtual banks, virtual insurers, regtech, wealthtech, credittech and payment tech. The winter programme just ended and I got a chance to talk to one of the students participating in the Scheme and the feedback is very positive. 
 
     Another area that I would like to share is green and sustainable finance – a domain where Hong Kong is also rapidly emerging as a global leader. We have recently issued a vision statement on developing a robust sustainability disclosure ecosystem in Hong Kong. Our goal is to be among the first jurisdictions to align local sustainability reporting requirements with the new International Sustainability Standards Board (ISSB) disclosure standards, which were published as the global baseline for entities to prepare comparable climate and sustainability information.
 
     By showcasing our commitment to reinforcing Hong Kong’s leading position on the international sustainable finance map, we aim to solidify the competitiveness of businesses in Hong Kong to address the growing global demand for sustainability data and disclosures. To translate this vision into concrete action, we will be launching a detailed roadmap within this year to provide a transparent and well-defined pathway on sustainability reporting for companies in Hong Kong. This will take a holistic, phased approach that covers all financial services sub-sectors, including listed companies as well as regulated institutions like banks, fund managers, insurers and Mandatory Provident Fund trustees. This initiative will go beyond just disclosure requirements. It will also encompass sustainability assurance to enable credible implementation, as well as capacity building programmes to support companies in their sustainability journeys. We have already taken steps in this direction, launching a set of free-to-use greenhouse gas emissions calculation and estimation tools that integrate Hong Kong and Mainland-specific data.
 
     Let me give you some more figures. The annual issuance of green and sustainable debt instruments in Hong Kong has seen remarkable growth, expanding from just US$12 billion in 2020 to more than US$80 billion in 2022 – a six-fold increase in just two years. In 2022, the volume of green and sustainable bonds arranged in Hong Kong topped the entire Asian market, accounting for 35 per cent of regional activity.
 
     The above shows that our green and sustainable finance market has been very vibrant and provides great opportunities for all walks of talent to work in Hong Kong, no matter whether it is banking, fund raising, risk management or accounting, etc. I am sure that students from Chicago Booth as well as other schools of the University of Chicago should not miss the opportunity to gain work experience in Hong Kong. In fact, we have launched a three-year Pilot Green and Sustainable Finance Capacity Building Support Scheme to encourage local eligible practitioners and prospective practitioners to participate in training related to green and sustainable finance in response to the new trend of developing low carbon and sustainable economy. What’s more, graduates from the University of Chicago should not miss our Top Talent Pass Scheme, as the Scheme targets graduates from the world’s top 100 universities and your University is definitely one of them.
 
     Let us draw inspiration from the University of Chicago’s storied history of intellectual curiosity and bold, interdisciplinary thinking. And let us harness the dynamism of Hong Kong’s financial ecosystem and our shared commitment to driving positive change on a global scale. 
 
     I look forward to the meaningful discussions and collaborations to come. Thank you very much.

  

     The Secretary for Financial Services and the Treasury, Mr Christopher Hui, yesterday (April 11, Chicago time) continued his visit to the United States (US). He met with a major Hong Kong business association and scholars of the University of Chicago. At night, he got together with more than 100 businesspeople in the Hong Kong Spring Reception.  
 
     Mr Hui started the day by attending the breakfast seminar cohosted by the Hong Kong Business Association of the Midwest and the Hong Kong Trade Development Council (HKTDC). He informed participants from diverse professional fields the latest developments of various areas of Hong Kong’s financial industry. He also hoped the association will continue to collaborate with the Hong Kong Economic and Trade Office, New York and the HKTDC.

     At the luncheon with scholars from the University of Chicago, Mr Hui talked about tremendous development opportunities in two key areas that are transforming the future of finance – fintech and green and sustainable finance.  
 
     “To further accelerate the development of fintech in Hong Kong, we are taking concerted action on several key fronts,” Mr Hui said. These include government-led data sharing initiative the Commercial Data Interchange platform, as well as Project mBridge and e-HKD that are exploring the potential of central bank digital currencies at both the wholesale and retail levels.  
 
     “The Hong Kong Special Administrative Region Government has been attaching great importance to nurturing fintech talent. In October last year, we launched the GBA Fintech Two-way Internship Scheme for Post-secondary Students to help students acquire practical work experience in fintech companies in Hong Kong and Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area,” Mr Hui added.
 
     Noting that Hong Kong’s green and sustainable finance market has been providing great opportunities for all walks of talent to work in the city, Mr Hui said students from the University of Chicago should not miss the opportunity to gain work experience in Hong Kong.
 
     “What’s more, graduates from the University of Chicago should not miss our Top Talent Pass Scheme as the scheme targets graduates from the world’s top 100 universities,” he said.
 
     The luncheon included a discussion session between Mr Hui and the university’s scholars led by the William Claude Reavis Professor, Department of Political Science of the University of Chicago, Professor Dali Yang.
 
     Mr Hui also visited the Polsky Center for Entrepreneurship and Innovation at Chicago Booth, to know more about their entrepreneurship and research commercialisation innovation initiatives.
 
     In the evening, Mr Hui attended the Hong Kong Spring Reception cohosted by the Hong Kong Economic and Trade Office, New York and the HKTDC. Addressing the reception, Mr Hui said as all the guests welcome the arrival of a new season, Hong Kong is also nurturing fresh vitality and prosperity.
 
     “As the events capital of Asia, Hong Kong stands as a compact, globally connected city that is increasingly attracting world-class mega events. In the first half of 2024 alone, more than 80 mega events have been or will be held in Hong Kong.
 
     “Our economy is gaining momentum as well. The Hong Kong economy rebounded in 2023 with real GDP (gross domestic product) growth resuming at 3.2 per cent. It is projected to further expand in 2024, with growth of 2.5 per cent to 3.5 per cent in real terms for the year as a whole,” he said.
 
     Earlier yesterday, Mr Hui paid a courtesy call to the Chinese Consul General in Chicago, Mr Zhao Jian.  
 
     Concluding his visit to the US, Mr Hui said, “New York and Hong Kong are both leading international financial centres, and Chicago is also a major global financial hub. The three cities are all densely populated metropolises where multinational enterprises operate.

     “During the visit, I introduced to the US’ business communities, academia and financial institutions Hong Kong’s stable do-business environment; unique strengths in such as asset and wealth management and offshore Renminbi business; the key initiatives demonstrating our determination to embrace financial innovation; as well as nurturing talent required to support the future development of our financial services industry. Apart from telling good Hong Kong stories, we also had meaningful exchanges. In the face of global common concerns like fintech innovation, tackling climate changes and enhancing risk management, I hope Hong Kong will continue to play its role as the gateway between the world and the Mainland, and explore collaboration with overseas regions, so as to promote sustainable and high-quality development for the well-being of a community with a shared future for mankind.”

     Mr Hui will return to Hong Kong at night on April 13.